scholarly journals The effect of vertical brand extensions on consumer-brand relationships in South Africa

2017 ◽  
Vol 48 (1) ◽  
pp. 1-10 ◽  
Author(s):  
O. Muroyiwa ◽  
R. Abratt ◽  
M. Mingione

The purpose of this research is to evaluate the impact of the introduction of vertical brand extensions on Consumer-Brand Relationships (CBRs) in the mobile phone market. In particular, we aim at exploring the effect vertical brand extensions that luxury and functional brands have on consumers’ perceptions, as well as the effect the extensions will have on CBRs. This study pursues a quantitative approach, developing and testing four hypotheses on the influence vertical brand extensions have on four CBR-related constructs, namely brand attachment, brand trust, brand commitment and brand identification. The elicited context is the South African market and the selected brands are Apple, to represent luxury brands, and Samsung, representative of functional brands. Results only partially confirm previous research on vertical brand extension. Supporting previous studies, a vertical step-down extension has been found to have a stronger negative impact on brand commitment for the luxury brand than for the functional one. However, findings disconfirm the literature in revealing a stronger negative impact on the functional brand than the luxury brand and a positive effect on the brand attachment of both brands, especially the functional brand.

Author(s):  
Nicole Stegemann

<p class="MsoBodyTextIndent3" style="line-height: normal; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-style: normal;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;">This article addresses the impact of brand extensions on the brand equity of luxury brands.<span style="mso-spacerun: yes;">&nbsp; </span>A review of the developments in the luxury market has shown significant changes in demand and supply sides.<span style="mso-spacerun: yes;">&nbsp; </span>The luxury market has been growing rapidly over the last 20 years, and luxury brands, formerly reserved for a small group of privileged individuals, are now available to more consumers.<span style="mso-spacerun: yes;">&nbsp; </span>Meanwhile, luxury goods manufacturers have been applying new marketing strategies, and extending their brands without any insights as to the consequences for their brands.<span style="mso-spacerun: yes;">&nbsp; </span>Despite these changes, little research has investigated the luxury market.<span style="mso-spacerun: yes;">&nbsp; </span>Therefore, a systematic review has been undertaken regarding the nature of luxury brands and research measuring individual luxury brand equity elements such as attitudes and perceptions.<span style="mso-spacerun: yes;">&nbsp; </span>Deviating results in the application of concepts for non-luxury brands to luxury brands have been found due to the abstract and emotional nature of luxury brands.<span style="mso-spacerun: yes;">&nbsp; </span>These results support the development of distinct brand equity constructs for luxury brands.<span style="mso-spacerun: yes;">&nbsp; </span>The main focus of this article is the impact of luxury brand extensions on the parent brand&rsquo;s equity and the proposal of a framework to allow the impact to be measured.</span></span></span></p>


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Flavia Braga Chinelato ◽  
Cid Gonçalves Filho ◽  
Clodoaldo Lopes Nizza Júnior

Purpose Salesperson performance is accepted as a relevant factor of retailing success. However, scarce studies reveal the relationship between sales performance and brand relationship. The purpose of this study is both, from one side, to empirically demonstrate the impact of salesperson brand attachment (SBA) on sales performance and, on the other side, to identify the mediators of this relationship in small retailing. Design/methodology/approach A survey was conducted with a sample of 206 small retailers from different sectors of an emerging country. The proposed model was tested using partial least squares–structural equation modeling (PLS-SEM) in SmartPLS3. Findings The results demonstrated that SBA is relevant to driving sales performance through two relevant paths – one following SBA–satisfaction–performance and one path following the SBA–commitment–performance. The model was able to explain 63% of the outcome performance. Practical implications Regarding small retailers, where the owners, employees and managers have higher levels of interaction than the large national retail chains, the marketing executives must invest in improving the attachment to the brand and create emotional bonds and cognition between marketers and the brand. They must develop strategies to promote job satisfaction and organizational commitment because they determine performance. Originality/value Despite the relevance of small businesses for economies worldwide and the importance of salesperson brand relationships, no study has been developed to demonstrate the impacts of such relationships on salesperson performance in retailing. Furthermore, in addition to the central role of organizational commitment in the sales research, to the best of the authors’ knowledge, this is the first study to explore how to mediate the relationship between brand attachment and sales performance.


2021 ◽  
pp. 183933492110466
Author(s):  
Felix Septianto ◽  
Joya Kemper ◽  
Gavin Northey

The integration of sustainability within luxury brands is of increasing concern to practitioners and academics alike. Thus, it is important to consider how brands can develop effective communication strategies to promote sustainable luxury brands, particularly among an increasingly skeptical consumer base. This research thus investigates the impact of advertising slogans with negations (vs. affirmations) in this regard. Three experimental studies show that advertising slogans with negations (vs. affirmations) increase brand trustworthiness (Studies 1 and 3) and favorable brand attitudes (Studies 1 and 2) among consumers with high levels of skepticism. Notably, this effect is driven by an increased cognitive flexibility (Study 3). The findings of this research can assist sustainable luxury brand managers in developing effective communication strategies to increase favorable consumer responses to sustainable luxury brands.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hyunju Shin ◽  
Jacqueline Eastman ◽  
Yuan Li

Purpose This study aims to focus on understanding the consumer-luxury brand relationships among Generation Z. Generation Z is an up-and-coming generational cohort that has received limited research attention in the domains of both consumer-brand relationships and luxury branding, despite its growing size and purchasing power. Therefore, this study highlights the distinctive patterns of Generation Z’s relationship with luxury by identifying their choice of a luxury brand, the nature of the brand relationships, what characterizes these relationships and the internal and external influences that shape these relationships. Design/methodology/approach This study used brand collage construction. A total of 56 Generation Z respondents created brand collages that covered 38 different luxury brands. The data from the collages and their accompanying descriptions were evaluated using content analysis. Findings This study identifies Generation Z’s unique yet expansive view of luxury that encompasses not only traditional luxury but also masstige and non-traditional luxury brands. Moreover, the findings generally support that Generation Z’s relationships with luxury brands are characterized by “like” rather than “love”; while Generation Z may feel a high level of loyalty toward luxury brands in terms of attitudes and behaviors, they do not necessarily have strong, passionate feelings for them. Originality/value The findings of this study offer a comprehensive understanding of Generation Z’s brand relationship with luxury. Luxury marketers need to recognize that for Generation Z consumers, luxury is an integral part of their everyday lifestyle more than a display of success, which is clearly different from previous generations.


Author(s):  
Esra Arıkan

The extant research highlights that the strength of consumer-brand relationships is very much shaped by consumers' experiences with brands. Given the inherent characteristics of luxury brands, it is no surprise that luxury consumers expect much more intense experiences, and thus the delivery of a superior brand experience is a necessity in the luxury market. Therefore, both marketing scholars and brand managers in the luxury market need to acknowledge the power of brand experiences as a way to strengthen consumer-brand relationships. However, despite the need for a deeper understanding of brand experience in the context of luxury brands, still much remains unknown regarding the factors that can be used to enhance brand experience. Building on this gap in the literature, this chapter investigates the relational outcomes of brand experience and subsequently discusses the various drivers that luxury brands can use to enhance luxury brand experience and thus develop stronger consumer-brand relationships.


2014 ◽  
Vol 32 (7) ◽  
pp. 769-793 ◽  
Author(s):  
Ning Li ◽  
Andrew Robson ◽  
Nigel Coates

Purpose – The purpose of this paper is to assess brand commitment levels demonstrated by luxury brand consumers in China and seeks to identify the most significant combination of antecedents from brand affect, image, value and trust. Design/methodology/approach – A self-completion, researcher-supported questionnaire was disseminated within four Beijing shopping malls, generating 501 participants. The questionnaire comprised a range of scale sets covering brand affect, image, value, trust and commitment. The analysis comprised a summary overview of brand attainment followed by a substantive analysis involving confirmatory factor analysis and structural equations modelling to identify the most significant combination of antecedents relating to brand commitment. Findings – Regarding absolute consumer endorsement, brand affect was the most positive area, with image, trust and value representing relatively positive brand attributes. Declared commitment was relatively low, representing a potential commercial challenge. Value, represented by its social and symbolic components, and trust were identified as providing a significant and direct explanation of consumer commitment, represented by its affective and continuance dimensions. The role of value and trust must be central in marketing luxury brands given their direct and combined impact on consumer commitment. Research limitations/implications – The findings are transferable to other “Tier 1” locations in China, but take no account of either consumer behaviour outside of these wealthier conurbations, or segmentation of the associated markets. Originality/value – Geographic setting and consideration of a vast consumer group provides research value and contribution to marketing planning in the pursuit of higher levels of consumer commitment to their brands.


2021 ◽  
Vol 1 (3) ◽  
pp. 199-210
Author(s):  
Ignatius Agus Suryono ◽  
Aryono Yacobus ◽  
Michelle Yoanna Franscisca Brigitta

Amidst the prolonged COVID - 19 Pandemic, Indonesian online marketplaces selling luxury brand products have been experienced a decrease in their market share, while on the other side, Indonesian online marketplaces selling standard products have been experienced a bullish position with their extraordinary increase of market share. In this research, we tried to examine the impact of brand satisfaction on customer advocacy with brand loyalty as both mediating and moderating variable and luxury brand attachment as mediating variable. Our focus in this research was on Indonesian marketplaces selling luxury brand products during this terrible pandemic, COVID - 19 Pandemic. We examined 108 customers who had purchasing experiences on luxury-brand sports shoes at Indonesian online marketplaces. In choosing our respondents, we used a non-probability sampling technique, the purposive sampling method. To analyze our hypothesis, we used a qualitative approach, which is path analysis. The results show that luxury brand attachment has a significant positive effect on brand loyalty, brand loyalty has a significant positive effect on customer advocacy, both mediated by brand loyalty and luxury brand attachment, and brand loyalty strengthens the impact of luxury brand attachment on customer advocacy. From that findings, we suggest that Indonesian online marketplaces that sell luxury brand products should increase their brand satisfaction through customer loyalty and luxury brand attachment to gain higher customer advocacy during and post COVID - 19 pandemic


2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Gerhardus Van Zyl

Orientation: This article is part of an ongoing research project on various aspects of employee productivity in the South African workplace.Research purpose: The aim of this article is to determine firm-based employee productivity impacts as a result of employee remuneration inequalities (excess-remuneration and under-remuneration) in the South African workplace.Motivation for the study: The study focuses on understanding the impact and magnitude of employee remuneration inequalities on employee productivity in a unionised South African workplace.Research design: The article adopts two distinct estimation models. The aim of the additive multivariate linear estimation model is to determine the sign and the significance of the impact of both under- and excess-remuneration levels on employee productivity when employee characteristics such as levels of training, work experience and managerial involvement are considered. The second model is a fixed-effect panel data estimation where the full sample set of the relevant firm-based data is used. The aim of the panel data estimations is to estimate the robustness of the additive multivariate linear estimates. The manufacturing industry of Gauteng has been chosen as the case study, given the importance of this industry, in the gross geographical product of Gauteng province and the availability of firm-based data.Main findings: Estimation results indicate a strong and significant negative impact of under-remuneration on employee productivity levels. Excess-remuneration levels have a small positive impact on employee productivity levels.Practical/managerial implications: The estimations indicate the necessity to eliminate remuneration inequalities and opt for equalised remuneration structures for similar occupations in the market to enhance employee productivity levels.Contribution/value-added: The study contributes to our understanding of the impact of remuneration inequalities for similar occupations on employee productivity.


Author(s):  
Gail M. Dludla ◽  
Siphiwe Dlamini

Background: At the heart and depth of building a strong and prosperous brand in the marketplace, is brand orientation. A few studies have investigated the conceptualisation of brand orientation in relation to brand loyalty, as well as the involvement of brand commitment and brand trust in mediating this association in the business-to-business (B2B) environment.Objective: It is the objective of this study to examine the impact of brand orientation on brand loyalty and the roles played by brand commitment and brand trust in mediating the impact in the South African B2B environment.Method: Questionnaires were completed by 261 top and senior managers of a B2B organisation in South Africa. Structural equation modelling and smart partial least squares were employed in this study to examine the relationships between the constructs.Results: This study provides empirical evidence that brand orientation has a positive and significant relationship with brand commitment and and brand trust. Also that brand commitment and brand trust have positive and significant relationships with brand loyalty in the South African B2B context.Conclusion: This means that organisations that operate in the B2B environment should focus on brand orientation and develop brand strategies that recognise the importance of brand trust and brand commitment.


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